Central bank allays fears of banknote shortage due to flooding

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BANGKOK, Oct 8 – The Bank of Thailand (BoT) gave assurances today that banknotes would circulate sufficiently countrywide despite severe floods in a number of provinces.

BoT deputy governor Tongurai Limpiti said the central bank has prepared contingency plans and nine BoT’s banknote management centres nationwide are responsible for distributing cash to commercial banks in their respective zones.

Reserved banknotes on hand at the centres are enough for 3-5 months, she said.

In case of emergency, the Royal Thai Air Force will provide C-130 aircraft to transport the banknotes but it has never happened so far, she added.

Priyavat Chainuvat, BoT assistant governor for Banknote Management Group, said the central bank would continue educating people on detecting fake banknotes despite the fact that Thailand is one of the 10 countries with the lowest rate of counterfeiting.

Permsuk Sutthinoon, BoT assistant governor for Information Technology Group, said the central bank would expand the Imaged Cheque Clearing and Archive System (ICAS) nationwide by year-end in order to lower the cost of cheque clearing.

ICAS is a system that shortens the cheque clearing cycle to only one day nationwide and enhance the efficiency of Thailand’s cheque clearing process to meet international standards and strengthen the country’s competitiveness.

He said the payment system would be improved to connect with the CLMV group, covering Cambodia, Laos, Myanmar and Vietnam – one of the preparations for the launch of the ASEAN Economic Community in 2015.